No More £15000 Phones as Vertu Mobile Closes its Doors
Joe Campbell / 3 years ago
Vertu is a brand amongst brands, the luxurious sister company of mobile giant Nokia. However, luxury is a very niche market. Unfortunately, due to high debts, Vertu is closing its doors. Around 200 jobs will be lost in the process.
Who is Vertu?
Vertu started trading in 1998, offering ultra-premium mobile devices for the rich and famous. The devices were top end with the latest feature sets. However, they were built with premium materials from real leather to snake-skin. The luxurious mobile phones were targeted at celebrities or business people with a price tag of £3000 all the way up to £15000.
Company Financial History
The company was sold to EQT VI in 2012 as a result of high debts, 2015 then saw a new buyer in the form of Godin Holdings. However, Godin Holdings were a company in their own cash crisis and Vertu struggled furthermore. Earlier this year, Murat Hakan Uzan purchased Vertu for £50 million. Uzan was a key member of one of the most controversial business families in Turkey.
Too Little, Too Late?
Despite the new investment, Vertu went into administration. Of course, there were attempts to rescue the luxury mobile manufacturer. However, these attempts failed and with a debt of £138 million proved too much. Vertu has now ceased trading and has closed the doors, along with around 200 jobs lost. Uzan attempted a bid of £1.9 million to get the company out of administration, this was subsequently rejected.
A Glimmer of Hope?
Sources have speculated that the Vertu branding, technology and licencing will still very much be alive. Of course, this doesn’t halt the loss of jobs in the British manufacturing plant. Only time will tell whether the luxurious devices will be a thing of history or a product of the future.